Elcoteq Network Corporation signs outsourcing agreement with Tellabs

Nordic Business Report, Nov 14, 2003

NORDIC BUSINESS REPORT-14 November 2003-Elcoteq Network Corporation signs outsourcing agreement with Tellabs(C)1994-2003 M2 COMMUNICATIONS LTD http://www.m2.com

Finnish electronics manufacturer Elcoteq Network Corporation said on Friday (14 November) that it had signed an agreement with the US telecomms infrastructure builder Tellabs International to outsource manufacturing of Tellabs' international products and transfer the ownership of its Finnish manufacturing operations in Espoo to Elcoteq.

The deal would mainly involve manufacturing of Tellabs' digital optical cross-connection products and broadband access systems.

As part of the deal Tellabs International had granted Elcoteq preferred supplier status, according to the company.

Elcoteq said that the acquiring unit would be its Estonian subsidiary Elcoteq Tallinn A/S.

Under the agreement, some 200 employees of Tellabs in the Espoo manufacturing operations would become Elcoteq employees on current terms.

Elcoteq expected Tellabs manufacturing projects to increase its 2004 net sales by clearly over EUR100m, and to enhance its 2004 profit.

One euro (EUR) is worth approximately 0.7 British pounds (GBP).

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